YEREVAN, SEPTEMBER 23, ARMENPRESS. Instability in world financial market creates difficulties for the economies of different countries including Armenia. The economy of Armenia sustains losses in conditions of dollar appreciation, ruble and dram devaluation. Competent authorities propose different mechanisms aimed at the economy’s stabilization.   “Armenpress” interviewed President of Union of Banks of Armenia Samvel Chzmachyan on global and local financial-economic situation.

How will the situation in world financial market affect financial-economic situation in Armenia?

World financial market is instable now and it influences our country as much as it is integrated into international economic relations. For instance, panic in world stock markets almost doesn’t affect Armenia as our stock market is not well developed, but the decline of the prices of raw materials has great impact on us as our export consists basically of nonferrous metals.

What fluctuations against the Armenian dram are possible and what policy should be adopted, in conditions of ruble devaluation and dollar appreciation in the world market?

I think, the Central Bank of the Republic of Armenia has adopted the only possible way to escape the “trap” with minimal losses, that is, pursuing a tough monetary policy aimed at the stability of the Armenian dram. The latter, if you can recall, in the long run prevented the destabilization of the situation in the foreign exchange markets at the end of last year.

In current situation, are there any possibilities for Armenia to derive some benefits? How?

It is very difficult for countries having such a small economy as Armenia to derive benefits during global turmoil. But I can say that our compatriots, spread all over the world, who are in instable areas or regions can transform part of their deposits to Armenian banks ensuring high-level stability and reliability.

What are the challenges the banks face in conditions of national currency devaluation?

We must understand that national currency appreciates as a result of tens of different factors in global, territorial and internal economy and banks, as part of the economy, as its integral part, cannot refrain from the consequences of the phenomenon. In such cases most of the banks become more careful and conservative to avoid losses.

What difficulties the Armenian population faces in terms of using banking services, when there’s instability in the financial market?

The population has to deal with the strict requirements of the banks, to endure the inconveniences, not to mention the fact that the paying capacity of the population and their ability to maneuver decrease.